Create a cvp graph assuming maximum sales

Assignment Help Managerial Accounting
Reference no: EM132541146

Glacial Company estimates that variable costs will be 62.5% of sales, and fixed costs will total $600,000. The selling price of the product is $4.

Question a) Create a CVP graph, assuming maximum sales of $3,200,000. (Note: Use $400,000 increments for sales and costs and 100,000 increments for units.)

Question b) Compute the break-even point in (1) units and (2) dollars.

Question c) Assuming actual sales are $2 million, compute the margin of safety in (1) dollars and (2) as a ratio.

Reference no: EM132541146

Questions Cloud

How would you define an ethical business culture : How would you define an ethical business culture? Use an example from your work history (or something you've read about) to illustrate what constitutes.
What is the summary journal entry to close any under : Sicily Company,What is the summary journal entry to close any under or overapplied manufacturing overhead cost to cost of goods sold.
Describe federal legislation dealing with labor relations : The National Labor Relations Act (NLRA) is one of the most significant pieces of federal legislation dealing with labor relations (textbook Chapter 19, pages).
How much will she have on deposit on april : Assume the account will earn 3% annually. If she repeats this for the next 9 years, how much will she have on deposit on April 14, 2030
Create a cvp graph assuming maximum sales : Create a CVP graph, assuming maximum sales of $3,200,000. (Note: Use $400,000 increments for sales and costs and 100,000 increments for units.)
What is your reaction to the concepts and historical : What were some historical cases of systems of workplace control? How did changes in technology fuel workplace conflict? How did the push for unionization.
How much would sales have to increase in unit : Davao Company,How much would sales have to increase, in units, to give Davao the same income or loss that it is currently earning?
What are your thoughts on crypto currency : What are some of the biggest opportunities related to product personalization and taking care of customers that will come up in the future?
What are the major issues addressed by accountants : What are the major issues addressed by accountants when dealing with international financial transactions? How and why do accountants mitigate risk

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Analyze the effect on profit of dropping accessories

Analyze the effect on profit of dropping accessories. Then write a paragraph explaining the role of common costs in your analysis and how allocation of common costs can lead to the cost allocation death spiral.

  Prepare income statement to compute the income before taxes

Prepare income statement to compute the income before taxes if the firm uses variable costing (also known as contribution margin costing or direct costing)

  Overlap between financial and management accounting

Are you surprised by the topics that management accountants are focusing on? Why or why not? What interests you more, financial accounting or management accounting?

  What is the present yearly net operating income or loss

With the assumption that the marketing studies are correct, help me determine what is the maximum annual profit that the company can earn?

  What the profit margin for steam boat is

$2,000,000, income from operations amounting to $290,000, and a desired minimum rate of return of 20%. The profit margin for Steam Boat is

  What will be the revised net operating income

$82,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company's monthly net operating income?

  What would be the per unit cost of drums

What would be the per unit cost of drums? What will be the total relevant cost of 75,000 drums if they are manufactured internally?

  Find what financial advantage of accepting special order

Find What is the financial advantage (disadvantage) of accepting the special order? (Round your intermediate calculations to 2 decimal places.)

  What strictly linear relationship between cost and volume

Managers often assume a strictly linear relationship between cost and volume. How can this practice be defended because of fact that many costs are curvilinear?

  Computing capital budget amount

Clinton Company is financed 40 percent by equity and 60 percent by debt. If the firm expects to earn $20 million in net income and retain 40% of it, how large can the capital budget be before common stock must be sold?

  Production cost report aussie yarn co is a us producer of

production cost report aussie yarn co. is a u.s. producer of woolen yarn made from wool imported from australia. raw

  The good buy company produces a single product

The Good Buy Company produces a single product. The cost characteristics of the product and of the manufacturing plant are given below:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd